Digia Oyj — Earnings Release 2019

Feb 7, 2020

Digia’s strategy and financial objectives for 2020–2022: Comprehensive service in an increasingly connected and data-driven world

Digia’s strategy and financial objectives for 2020–2022: Comprehensive service in an increasingly connected and data-driven world

Digia Plc
Stock exchange release
7 February 2020, 08:01 am

In the strategy period 2020–2022, the company seeks an annual net sales growth
exceeding 10% including organic growth and acquisitions. The target level of
profitability improvement is an EBITA margin of 10 per cent by the end of the
strategy period.

'In 2017–2019, we strengthened our expertise and our overall offering and posted
rapid growth. Digia's new strategy for 2020–2022, Next Level, is the next
logical step in our growth journey. We will continue to renew our operations and
strengthen the selected focus areas. In the strategy, we place particular
emphasis on the potential of data utilisation in our customers' services and
business processes. We will continue to pursue strong growth and profitability
improvement. We will develop our capabilities to the next level so that we can
be an even stronger business development partner for our customers in a world
where business is becoming networked, the importance of data-driven control is
growing and security requirements are highlighted,' President and CEO Timo
Levoranta says.

Market outlook

We expect the IT service market to continue to grow. The underlying long-term
trend is digitalisation, which in its various forms supports demand. We see the
following strengthening trends in the market both in the business and public
sector:

· Digitalisation is becoming an increasingly important part of our customers'
core operations.
· The world is becoming networked, and digital platforms enable new business
models.
· Smart and responsible data utilisation in business processes creates a
competitive advantage.
· Good user experience in services is a critical success factor.
· The importance of cloud technologies as a platform for developing and
operating services is becoming the norm.

Digia’s strategy for 2020–2022: Next Level

Financial objectives:

The company seeks an annual net sales growth exceeding 10% including organic
growth and acquisitions. The target level of profitability improvement is an
EBITA margin of 10 per cent by the end of the strategy period.

Value for customers:

Digia delivers value to its customers by acting as a visionary and reliable
partner in a connected and data-driven world. Strong customer relations,
professionalism, product and service packages, a partnership network and
responsibility form the basis for our operations. Our clientele consists of
companies and public sector actors.

For its customers, Digia is a turnkey provider of smart solutions and a service
company that manages the service lifecycle from implementation to maintenance
and development. We provide our customers with a service package covering mobile
and online services, data platforms and knowledge-based management, integrations
and APIs, as well as business core systems including high-security solutions.
For all of these, we provide various levels of maintenance services to help our
customers operate their business-critical systems and services around the clock.
In the strategy period 2020–2022, we will further strengthen this entity.

The focus areas of Digia's strategy to increase customer benefits are:

1. Smart and responsible data utilisation
   We will bring data utilisation as a cross-cutting theme for all Digia’s service
   areas from business systems to integrations and digital services.

2. Service business
   We will deepen our customer relationships and further strengthen the share of
   service business.

3. Productivity and scalability
   We will develop our operational models and solutions to improve our cost
   competitiveness. An essential development project in the strategy period will be
   the reform of our own business platform.

4. Cloud technologies
   Cloud is the development and operating platform for future services. We will
   continue to strengthen our expertise in cloud services, taking into account
   security and key public cloud platforms (Microsoft Azure, Amazon Web Services
   and Google Cloud Platform).

5. Valued employer
   Skilled employees are the most important success factor for Digia. We are
   constantly developing Digia into a more desirable workplace by reinforcing our
   culture, at the heart of which is the continuous learning of every employee.

The direction of development and the future world

Software, their growing intelligence and data are changing the world.
Organisations' value creation models and people's work patterns are evolving.

At business level this development means that value is created in networks and
ecosystems, using data intelligently.

At the level of companies' internal operations and individuals, we are moving
towards a symbiosis between humans and software, where people work with
meaningful tasks while automation and software do the rest.

In this development, Digia is a visionary and reliable partner valued by its
customers, as well as a responsible learning community valued by its employees.

Further information:

President & CEO Timo Levoranta, tel. (exchange) +358 (0)10 313 3000

Distribution:

NASDAQ Helsinki
Key media
digia.com

Digia is a software and service company that helps its customers renew
themselves in the networked world. There are more than 1,200 of us working at
Digia. Our roots are in Finland and we operate with our customers in Finland and
abroad. We are building a world in which digitalisation makes a difference –
together with our customers and partners. Digia net sales were EUR 131.8 million
in 2019. The company is listed on Nasdaq Helsinki (DIGIA). digia.com